Belk has closed $1.275 billion in new senior secured credit facilities from Wells Fargo and Pathlight Capital, refinancing its capital structure and providing additional liquidity for working capital, inventory, and other corporate purposes.
The financing consists of a $900 million asset-based revolving credit facility and a $375 million first-in, last-out term loan. Wells Fargo is serving as Administrative Agent and Collateral Agent for both facilities, while Pathlight Capital is Term Loan Managing Agent for the FILO facility.
The five-year financing replaces Belk’s existing asset-based lending, FILO, and securitization facilities. The company said the transaction simplifies its capital structure and provides increased liquidity to support seasonal inventory requirements and continued investment in its business.
Collateral supporting the facilities includes inventory, receivables, real estate, equipment, intellectual property, and Belk’s private-label credit card program.
Belk operates nearly 300 Belk, Belk Market, and Belk Outlet locations across 16 states in the Southeast and maintains an omnichannel presence through its website and mobile application. The retailer traces its history to 1888.
Pathlight specializes in private credit and asset-based loans secured by tangible and intangible assets. Wells Fargo’s Corporate and Retail Asset-Based Lending platform is expanding an existing relationship with Belk through the financing.
The transaction provides Belk with a longer-dated financing structure as it continues investing in stores, digital channels, inventory, and customer-facing initiatives.
KEY QUOTES:
“This opportunistic financing represents an important milestone and reflects the continued strength in Belk’s business by providing us with the flexibility to continue investing in our business and serving our customers. We appreciate the support, expertise and collaborative approach demonstrated by Wells Fargo, Pathlight Capital and the broader lender group throughout the transaction.”
Vince Phelan, Chief Financial Officer Of Belk
“Wells Fargo is proud to expand its relationship with Belk and deliver a flexible financing solution supporting the Company’s long-term objectives. We look forward to supporting the Company in its next phase.”
Keith Vercauteren, Division Manager And Head Of Wells Fargo’s Corporate And Retail Asset-Based Lending Platform
“We are pleased to partner with Belk and Wells Fargo on this financing. The transaction provides Belk with additional liquidity and flexibility as the Company continues to invest in its business and execute on its strategic priorities.”
Matt Williams, Managing Director At Pathlight Capital
